Video: "The Columnists on Risk"

The Wall Street Journal has gathered ideas from artists, celebrities, and business people on taking risks. Risk-taking is essential to address situations that conflict with your values, to have difficult conversations, to innovate, and to advance your career.

To demonstrate courage, we must assess risks. in his book, Moral Courage, Rushworth Kidder identifies three questions to ask ourselves when faced with a decision that requires courage. First, we must be willing to face ambiguity and confusion. Situations that require courage are rarely straightforward. Can we handle conflicting, complex points of view without having one “right” answer? Second, are we willing to face exposure? By taking action, we make ourselves vulnerable. Are we ready for the leadership role that’s required? Third, can we accept the loss? We may lose our reputation, our relationships, or our job.

Discussion:

  • How would you describe your risk tolerance?

  • To which of the ideas shared in the video do you most and least relate?

  • Some people in the video describe physical risks. What’s the difference between physical and moral courage?

  • How do your own ideas about risk affect your work and your employment choices?

Are U.S. Campuses Coddling Students?

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A new book, The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure, explores the impact of political discourse on U.S. college campuses. The book is an expansion of an Atlantic article in which Jonathan Haidt, one of the book authors, disputed “trigger warnings” and other anxiety-avoiding tactics.

The authors are clear that harassment and discrimination are wrong, and that students who experience them should report the incidents. But, according to a Bloomberg article, we may lose the ability to communicate with each other:

“They worry about the What worries him is the looseness of the term ‘bias’ and the idea that students are urged not to work out their concern with the alleged perpetrator but to report it directly to the authorities.”

Also concerning the authors is the high percentage of liberal faculty members. A recent study shows that 39% of the most elite liberal arts schools have no Republican professors. The Bloomberg writer notes the possible negative effect:

"Critics argue that the atmosphere of liberal orthodoxy increases the risk that graduates will enter the workforce without knowing how to confront political viewpoints different from their own.”

Cover image source.

Discussion:

  • What’s your view? Are we coddling students, or do they need more protection and “safe spaces”?

  • How would you describe the differences among discrimination, harassment, and bias?

  • How might the issue of protecting people from bias contribute to sexual harassment in the workplace? How can we help people sort out problems at an interpersonal level?

Nike Addresses Kaepernick on Earnings Call

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On a quarterly earnings call, Nike CEO Mark Parker addressed head on the new ad campaign with former NFL player Colin Kaepernick. Following strong first-quarter earnings and revenue growth, Parker expressed confidence in Nike’s sponsorship agreement, particularly related to social media engagement:

“How we look at it is how do we connect and engage in a way that’s relevant and inspiring to the consumers that we’re here to serve. Our brand strength ... is a key dimension that contributes to the ongoing momentum that we’re building across the Nike portfolio.”

About an ad campaign that also features athletes Serena Williams and Lebron James, Parker said,

“These are actually very inspiring athletes, and again we feel like that campaign has delivered on that message in a way that’s really connected with people around the world.”

But the stock did fall in after-hours trading after the earnings report. Analysts say investors expected more than 10% revenue growth, and they note this is the first quarter since a sexual harassment scandal hit the company.

Stock image source.

Discussion:

  • The company executives tout the campaign results on social media. How much do these results matter compared to the earnings report?

  • Maybe this is another example of how quarterly reports aren’t the best measure of company performance. Should we be looking longer term? Why or why not?

Students Protest Required Presentations

Middle and high school students want to ban in-class presentations because some students experience speech anxiety. These students argue that speeches put undue pressure on teens, particularly those with anxiety disorders. One student said, “Nobody should be forced to do something that makes them uncomfortable.” This is quite a statement.

I agree that students with severe anxiety may be at risk and certainly need additional support. But most people can easily overcome speech anxiety. A couple of years ago, I developed a web-based tool with strategies to use before, during, and after a speech:

URL: speaking.amynewman.com
User: email
Password: Statler65

Employers will not likely tolerate employees who aren’t comfortable presenting in front of others. School is the time to practice and develop these skills.

Discussion:

  • What’s your experience with giving speeches in middle and high school?

  • What have you done in your life to feel more comfortable giving presentations?

  • What’s your view of the students’ position?

Accusation and Defense of Brett Kavanaugh

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On the final days of interviews with Brett Kavanaugh to become a Supreme Court Justice, a woman has accused him of sexual assault when they were teenagers, more than 30 years ago. Professor Christine Blasey Ford wanted to stay anonymous, but she is now known as the one who claims Kavanaugh assaulted her at a Georgetown Preparatory School party when she was 15 and Kavanaugh was 17. She revealed her allegation in a letter to her congressman. Dr. Blasey believes that she would have been raped if Kavanaugh weren’t drunk. Both will testify on Monday.

For leadership and business communication students, let’s look at the arguments on both sides. Here is some of the evidence presented so far:

  • Twenty-four women who attended private school with Dr. Blasey supported her in a signed letter “to attest to her honesty, integrity, and intelligence.” (For some letter-writing history, read the defense of Professor Avital Ronell and the subsequent explanation.)

  • Dr. Blasey passed a polygraph test, but critics say the test is imperfect for proving truthfulness.

  • Although Dr. Blasey doesn’t remember some details (for example, whose house they were at), trauma experts say this is typical for people who experience such a trauma.

  • Kavanaugh denies the incident: “I categorically and unequivocally deny this allegation. I did not do this back in high school or at any time.”

  • Mark Judge, Kavanaugh’s roommate at the time, said, “I have no memory of this alleged incident." Dr. Blasey claims he was in the room during the incident. Judge also said, "It's just absolutely nuts. I never saw Brett act that way.” He also said they were raised in Catholic homes that didn’t tolerate such behavior and that Kavanaugh was “brilliant” and not “into anything crazy or illegal.” Judge wrote a book, Wasted: Tales of a GenX Drunk, about his time at Georgetown Prep.

  • Kavanaugh’s high school yearbook has become public and is “raising eyebrows,” as MSNBC and CNN both report. The yearbook includes captions such as “Do these guys beat their wives?” and “100 kegs or bust,” indicating a party culture. Mark Judge’s yearbook page, shown here, includes a quote: “Certain women should be struck regularly, like gongs.”

The FBI and/or congressional investigation is a nearly impossible task. Does this evidence help?

Cover image source. Yearbook image source.

Discussion:

  • Which of these evidence points do you consider most and lease relevant to the question of whether Kavanaugh sexually assaulted Dr. Blasey?

  • What biases might you bring to the analysis? Think about your own assumptions and how they might affect your interpretation.

  • What advice would you give to members of Senate Judiciary Committee as they decide what happened and, ultimately, whether Kavanaugh should be elected to the highest court position.

Disneyland Employees Speak Out

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Disney employees are on screen in a New York Times op-ed video, "I Work at the Happiest Place on Earth. Why Can’t I Pay My Rent?" A 30-year concierge and a cosmetologist are featured more prominently. One is currently living in her car, and another says, tearfully, that she has spent time in her car. Both say they love their jobs, but along with 75% of Disneyland employees, they can't afford to pay "basic expenses every month." Data comes from a questionnaire and report, "Working for the Mouse."

The argument is for Disney to pay a living wage, and the call is for citizens to vote for an Anaheim proposal that affects Disneyland employees and some local hotel workers. In the video, one claim is that real wages have declined because of inflation—what $15 per hour bought seven years ago isn't the same today.

Business leaders who are fighting the measure say that the increase would hurt jobs. One local Chamber of Commerce member argued, "We estimate 3-4,000 jobs lost over next year or two by companies having to absorb this new increased cost. They're going to reduce hours and reduce jobs."

Senator and former presidential candidate Bernie Sanders is also featured in the video. He is proposing a bill he calls "Stop BEZOS" to tax Amazon and other large companies for public assistance received by their employees. The idea is for companies with 500 or more employees to pay the government back for support paid to their employees who cannot survive on earned wages.

Image source.

Discussion:

  • How well does the video make the case for higher wages? Which are logical and which are emotional appeals? What evidence is presented?
  • Assess the credibility of the questionnaire and report, "Working for the Mouse." From your assessment, what makes the report both credible and questionable? In what ways does the report reflect business communication standards, and in what ways does it fall short?
  • Research the impact of raising wages on industry, for example, this Cornell report. What's your view of this argument? It's a complicated question because of different industries, locations, labor supply, rates, etc.
  • In what ways do the employees featured in the video demonstrate courage? What risks did they take in appearing on screen?

Nike Takes a Chance on Kaepernick

Former National Football League quarterback Colin Kaepernick will be the new celebrity face of Nike's "Just Do It" campaign. Kaepernick was the center of controversy when players were both complimented and criticized for "taking a knee" to protest racism and promote social justice.

Nike and Kaepernick already had a sponsorship deal, but this new contract extends it. The deal may be "awkward," to use The New York Times's phrase, because the NFL has not been able to stop player protests, to the dismay of President Trump and others.

Also, Kaepernick hasn't played in the league since 2016 and has an active grievance, accusing the league of conspiring to prevent him from playing.

But neither Nike nor Kaepernick are shying away from the message. The first ad shows Kaepernick with the caption, "Believe in something. Even if it means sacrificing everything."

As part of the deal, Nike will contribute to "Know Your Rights," Kaepernick's foundation to "fight oppression of all kinds globally, through education and social activism.

Discussion:

  • What risks is Nike taking with this contract? Do you believe the campaign will be well received, divisive, or something else?

  • Nike didn't respond to The New York Times for comment about the story. Should the company include a comment or make a statement? Why or why not?

  • What leadership character dimensions are illustrated by this story?

Facebook Memo from Conservative Employees

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Reminiscent of last year's Google memo titled "Google’s Ideological Echo Chamber," a group of politically conservative employees at Facebook wrote a memo titled "We Have a Problem With Political Diversity." The message is similar: employees who hold conservative views do not feel included at the company.

The memo emphasizes two major points:

  • "We are a political monoculture that’s intolerant of different views."
  • "We do this so consistently that employees are afraid to say anything when they disagree with what’s around them politically."

The writer includes some evidence, and business communication students may want more. The end of the memo, which is much shorter and less divisive than Google's, includes a call to action: for interested employees to join a Facebook group, now showing 1422 members.

Discussion:

  • Assess the memo for organization. Are the headings clear and parallel? What are the strengths, and what could be improved?
  • Now assess the evidence. Which facts and examples do you find most and least convincing? What additional evidence would improve the arguments?
  • What's your view of the employees' approach? Do you find the memo and call to join a Facebook group an effective choice for the company? What could be some alternatives? 
  • In what ways is this situation an example of diversity and inclusion at Facebook?
  • In what ways does the memo demonstrate courage?

Report Concludes that Amazon Is "Delivering Hate"

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A scathing report accuses Amazon of spreading hate in the form of white supremacist and racist material. The report, published by Partnership for Working Families and the Action Center on Race and the Economy, cited books, clothing, jewelry, and other items for sale. Listings include Nazi memorabilia, references to lynching, and Confederate flags, for example, a baby's onesie with a burning cross and a noose decal.

The report authors argue that, although Amazon has policies in place to prevent the sale of "products that promote or glorify hatred, violence, racial, sexual or religious intolerance or promote organizations with such views," the company acts too slowly or not at all to remove such items. 

Danielle Citron, a professor at the University of Maryland Carey School of Law, said that Amazon hasn't been criticized as much as Twitter and Facebook have been.

Discussion:

  • The law professor acknowledged that Amazon wouldn't be held liable. What do you think is the company's responsibility?
  • What's the danger of both too little and too much oversight of item listings? 
  • Analyze the report: audience, objectives, organization, writing style, and so on? Which business report writing principles are followed, and what could be improved?

Before You Hit Delete: How to Respond to Emails You Want to Ignore

Students know how it feels: you spend hours crafting the perfect email—and then nothing. You refresh and refresh, check on your phone, laptop, and desktop. We know how it feels, so why don’t people respond to emails? Here are three common reasons and suggested responses for each. Sometimes having the language helps, and of course, these can be adjusted to the situation and for your own style.

Inappropriate or Untimely Request

  • Thanks for the email, but this isn’t really my area of interest [or expertise]. I hope you find someone else to help.
  • Thanks for reaching out, but I’m not the right person for this because . . .
  • This sounds like a great idea, but I’m fully committed at this point. Best of luck on the project.
  • Can this possibly wait until September when I’ll have more time to focus on this?

Obvious or Annoying Question

  • May I suggest that you look at the policy for this information? [Add a link.]
  • I’m not sure I understand your question. Can you please clarify how I can help?
  • From my point of view, we already covered this when we talked on Thursday. I’m not sure how else to clarify my thinking on this.
  • I’m forwarding your email to . . . who can better address your question.

Overwhelming Request or Question

  • This is a lot! Could we schedule a quick call to discuss?
  • I’m having trouble digesting all of this. Can you please send back a few bullets that I can respond to?
  • The short answer to your question is . . . If you need more from me, can you please be more specific about how I can help?
  • I can answer some of this . . . For your other questions, I suggest trying . . .

Admittedly, all of these responses require some engagement, but we respond to emails for good reasons: to demonstrate respect, to educate, and for reciprocity. I would argue that replying is “the right thing to do”—and a brief response requires very little from us to be good corporate citizens.

Image source.

Discussion:

  • When have you written an email that was ignored? Why do you think the person didn't respond, and how did you feel? Could you have done anything differently to get a response?
  • When have you ignored an email? Why didn't you respond?
  • Do you agree that responding is the "right thing to do"? Why or why not? When, if ever, is it acceptable to ignore an email?
  • What leadership character dimensions may be lacking when people don't respond to emails?

Barnes and Noble CEO Gets Fired

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The Barnes and Noble board isn't giving any details about why CEO Demos Parneros was terminated. In a brief press release, the company cited "violations of the Company’s policies" and stated that the decision wasn't based on "any disagreement with the Company regarding its financial reporting, policies or practices or any potential fraud relating thereto."

However, the CEO's termination will result in a loss of severance pay, and he will no longer serve on the company board. Parneros joined Barnes and Noble in 2016 and accepted the chief position just a year ago. Given his short tenure with the company, the consequences seem reasonable.

Perhaps unusually, the statement emphasizes legal counsel:

This action was taken by the Company’s Board of Directors who were advised by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. 

To me, this sounds unnecessary and defensive: of course a company would receive legal counsel in such a situation.

Cover image source.

Parneros image source.

Discussion:

  • Why would the board of directors not say more about why Parneros was fired? Should they?
  • What are the downsides of failing to reveal the reason for the termination?
  • What are your thoughts about the statement, particularly the reference to legal counsel? Why would the board include this? Could it be self-promotional for the law firm?
  • Which leadership character dimensions are illustrated by this situation? Which may be lacking?

Intel CEO Resigns Over Relationship With Employee

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A Wall Street Journal article describes events leading to the Intel CEO's resignation. Brian Krzanich had an affair with a mid-level manager at the company, but the relationship ended years ago. Still, the affair became public when the woman told a co-worker who, citing the company's strict policy, reported it to the board of directors.

Intel has a particularly tough policy, which bans any relationships among managers and any employees and requires employees to report known relationships.

In a news release, the company announced the news in the first paragraph and then quickly moved to the future: the appointment of an interim CEO and expressions of confidence for Intel's strategy. Still, the stock fell 3.5% on the news.

Image source.

Discussion:

  • Did Krazanich do the right thing by resigning? Why or why not?
  • What are the advantages and downsides of Intel's strict policy? "Non-fraternization" seems dated and odd, doesn't it? Why would a company use this title?
  • Consider the employees who discussed the affair. We might assume that one confided in the other. What were the steps along the way that led to Krazanich's resignation? Who is accountable for the result?

Tesla Employee Accused of Sabotage

A Tesla employee is accused of hacking into the computer system and changing code that affected the manufacturing process of the Model 3 car. The company believes this is the reason for the production delays.

CEO Elon Musk sent an email to employees, explaining the situation and asking them to report anything that looks "suspicious." He also writes, "This can be done in your name, which will be kept confidential, or completely anonymously." Musk blames an employment dispute:

"The full extent of his actions are not yet clear, but what he has admitted to so far is pretty bad. His stated motivation is that he wanted a promotion that he did not receive. In light of these actions, not promoting him was definitely the right move."

Musk gives other possible explanations for the deceit. He mentions short-sellers and members of the oil and gas industry who "don't love the idea of Tesla advancing the progress of solar power & electric cars."

The employee, Martin Tripp, disputes the claim, saying he was a "whistle blower." According to Tripp, he merely sent a query to a database to confirm waste and safety issues he saw at the company. Tripp has worked for Tesla since 2007.

Meanwhile, an email exchange between Musk and Tripp has become public:

Tripp: “Don’t worry, you have what’s coming to you for the lies you have told to the public and investors.”

Musk: “Threatening me only makes it worse for you”

Tripp: “I never made a threat. I simply told you that you have what’s coming. Thank you for this gift!!!!”

Musk: “You should ashamed of yourself for framing other people. You’re a horrible human being.”

Tripp: “I NEVER ‘framed’ anyone else or even insinuated anyone else as being involved in my production of documents of your MILLIONS OF DOLLARS OF WASTE, Safety concerns, lying to investors/the WORLD. Putting cars on the road with safety issues is being a horrible human being!”

Musk: “There are literally injuries[sic] with Model 3. It is by far the safest car in the world for any midsize vehicle. And of course a company with billions of dollars in product is going to have millions of dollars in scrap. This is not news.

“However, betraying your word of honor, breaking the deal you had when Tesla gave you a job and framing your colleagues are wrong and some come with legal penalties. So it goes. Be well.”

Image source.

Discussion:

  • I'm curious about the possibility of employees reporting anonymously when Musk gives an email address. How is this possible?
  • Have you been in a situation where you were unhappy with how you were treated by management? What resources were available to you?
  • Assess Musk's email to employees: the audience focus, organization, tone, and so forth. What works well, and what could be improved?
  • What's your view of the dispute between the company and the employee? With whom do you side, and why?

Tonys Recap: Speeches and Politics

As usual, the annual Tony awards was a star-studded night with fancy clothes and big celebrities. But this year, the show got political.

Most significantly—or most viral—was Robert De Niro's "F-bomb" preceding President Trump's name. He received a highly positive reaction from the Hollywood audience, with people cheering and standing. The comment, which De Niro repeated, was censored in the United States, but an Australian feed let it roll, so it's available in full on YouTube.

A highlight of the night was hearing graduating students from Marjory Stoneman Douglas High School in Parkland, FL, where a shooter recently killed 17 people and left more injured. Students sang "Seasons of Love" from "Rent" and encouraged us to "measure your life in love." A Washington Post article referred to this segment as "the most moving moment" of the night.

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Discussion:

  • What's your view of De Niro's outburst: inappropriate, inspiring, or something else?
  • How would you respond to the same question about the high school students?
  • One could argue that De Niro is "just being his authentic self." How would you respond to this perspective?

More About the Roseanne Situation

Reactions to Roseanne's tweets and her firing raise interesting questions about communication. Let's look at decisions and responses from five groups: cast members, ABC executives, conservatives, the makers of Ambien, and President Trump.

Cast Members

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Perhaps the most immediate and vocal reaction came from Sara Gilbert, who plays one of Roseanne's daughters on the show. Although she likely has a lot to lose, Gilbert did not hesitate in expressing her anger at Roseanne's tweet about Valerie Jarrett. 

ABC Executives

A New York Times article sheds more light on ABC's decision to cancel the show. Channing Dungey, appointed to lead ABC Entertainment in 2016, is the first African-American woman in such a senior leadership role at a network. With this decision, which was supported by more senior-level executives at ABC, Dungey has made her mark and won praise from other entertainment executives.

Conservatives

Political conservatives support Roseanne and blast the media and firing for silencing her voice. A writer for InfoWars, which has connections to radio host Alex Jones, referred to Roseanne's extraordinary ratings and the "PC police." Conservatives see this as another example of censorship of the right.

Ambien

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After the firing, Roseanne returned to Twitter and seemed to blame sleep drug Ambien for her comments: "It was 2 in the morning and I was ambien tweeting." The drug maker Sanofi responded quickly to defend its "side effects."

President Trump

The president also has jumped into the conversation, which contradicted his press secretary's claim: "That's not what he's spending his time on." President Trump's tweet took aim at CEO Bob Iger: 

"Bob Iger of ABC called Valerie Jarrett to let her know that 'ABC does not tolerate comments like those' made by Roseanne Barr. Gee, he never called President Donald J. Trump to apologize for the HORRIBLE statements made and said about me on ABC. Maybe I just didn't get the call?"

The president and Roseanne are mutual fans.

Discussion:

  • Which, if any, of these reactions surprise you?
  • Assess Ambien's response. How well did the company defend the brand?
  • Should President Trump have involved himself in this situation? Why or why not?

Cornell Student Presents Thesis in Underwear

Upset about a professor's advice to wear professional clothing, a student at Cornell University delivered her practice senior thesis in her underwear. The news is making international headlines, and some of the facts presented aren't quite what transpired.

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In this theater class, "Acting in Public," the faculty member encourages students to consider everything about their presentation, including dress. When a student wore cut-off shorts, she was asked to consider the impression she wanted to make.

Most students in the class did not agree with how the situation was portrayed, and 11 of the 13 other students in the class wrote a long description from their perspective. They write that, although they support the student's fight for equality, "All of us feel that our professor’s words and actions were unfairly represented in the post, with certain quotes taken out of context, and we wish to clarify any misunderstandings that may have occurred." They also explain that the professor "apologized for her choice of words, acknowledging that the notion of 'short shorts' on women carries a lot of cultural and political baggage." But the student wasn't in the classroom to hear this comment.

Image source.

Discussion:

  • Read the Cornell Daily Sun article and the other students' perspective. Whose side do you favor and why?
  • How do you view the student's actions: courageous, distasteful, disrespectful, or something else?
  • What's your opinion on "professional attire"? In what situations should people adjust what they wear?
  • Compare this situation to an employment interview. What is similar, and what is different?

MSU's Denial as a Cultural Issue

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A Chronicle of Higher Ed article blames Michigan State University's ambitions and culture for their leaders' lack of response to years of sexual abuse on campus. More than 12 people knew of complaints against physician Larry Nassar, but the abuse continued for years.

Lou Anna K. Simon's leadership is questioned in the article. Although clearly a committed leader to the university, Simon is criticized for focusing so much on "two decades of status-climbing" that a culture of denying any wrongdoing evolved. One of the trustees summed up the issue in a letter and emphasized "We must embrace our obligation to apologize and offer justice."

Apologizing may be a sore subject for the trustees because Simon avoided it in the case of Larry Nassar's victims, according to the Chronicle article:

She talked about how “it is virtually impossible to stop a determined sexual predator and pedophile, that they will go to incomprehensible lengths to keep what they do in the shadows.” She often used “regret,” “sympathize,” and “acknowledge” in her written statements, but not “apologize.” She emphasized that sexual assault is a societal problem, not a Michigan State one. She highlighted all of the steps the university had taken to prevent sexual misconduct.

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Discussion:

  • Analyze the trustee's letter. What principles of business writing are followed? What are the strengths of the letter, and what could be improved?
  • The trustee encourages MSU leadership to listen. What does he mean by this, and how would listening help the situation?
  • What is the value of apologizing and admitting failure? What are the potential downsides, particularly for a university trying to improve its stature?
  • This story illustrates several failings of leadership character. Which can you identify, and which do you think are most relevant here?

Chipotle CEO Generates Excitement

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After a dismal three years of food-safety issues, Chipotle saw a strong first quarter, and CEO Brian Niccol is confident about the company's future. Since the outbreaks, part of Chipotle's turnaround plan was to introduce new menu items, but they did not prove successful.

In an interview, Niccol described new plans, which may include drive-thrus, longer hours, mobile ordering, or menu items that are more thoroughly tested. But Niccol resists offering deals and breakfast, despite what Bill Ackman, Chipotle's largest shareholder, advises:

“I’ve been very clear with him: Not now, Bill and I have had a couple of really good conversations. He may have some ideas that I don’t think are the right ones now.”

Here's the earnings call webcast. In the press release, Niccol further explained the company's plans:

"While the company made notable progress during the quarter, I firmly believe we can accelerate that progress in the future.  We are in the process of forming a path to greater performance in sales, transactions, margins and new restaurants.  This path to performance will be grounded in a strategy of executing the fundamentals while introducing consumer-meaningful innovation across the business.  It will also require a structure and organization built for creativity, action and accountability.  Finally, Chipotle will have a culture that is centered on running great restaurants, putting the customer first, innovating for today and tomorrow, supporting each other, and delivering on commitments.  The future will be meaningful at Chipotle."

(Disclosure: I own a modest amount of Chipotle stock.) Image source.

Discussion:

  • Assess the earnings call or press release. What business jargon do you identify? Is it too much, or is it appropriate for the situation and audience?
  • Niccol is challenging Ackman's ideas, which is risky for a new CEO. How do you interpret his statement? Again, is what he says appropriate for the situation, or should he present his views differently?
  • Would you say that Niccol is demonstrating courage in his statement about Ackman? Why or why not?

More About the Starbucks Bias Situation

After the arrest of two black men in a Philadelphia store, Starbucks announced that 8,000 stores will close on May 29 for racial-bias training. But are some skeptical about the impact that one day of training will have, and the company seems to be imitating Chipotle's decision to close stores for food safety training. On the other hand, the company could have blamed the employee who called the police, a crisis communication strategy we have seem in many other situations. 

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An article in the New York Times describes racial bias research in hospitality customer service and may tell us more about the incident in Philadelphia. In one study, researchers sent emails to hotels using different names that reflected gender and race, asking for restaurant recommendations. Responses indicated racial bias, as the authors describe: "Hotel employees were significantly more likely to respond to inquiries from people who had typically white names than from those who had typically black and Asian names."

In addition, researchers analyzed "politeness," for example, whether employees wrote "best" or "sincerely" before signing their name. They were more likely to use such words when responding to guests with names that sounded white, and the authors describe another finding for this group: 

They were three times as likely to provide extra information — even when the initial inquiry was just about restaurants — to white than to black or Asian people.

In addition to training, the authors suggest periodic customer service audits and consistent scripts and policies.

In a turn, Philadelphia Police Commissioner Richard Ross has apologized to the two men who were arrested. In his original video, Ross defended the officers actions and said, based on a sergeant's experience at Starbucks, "they are at least consistent in their policy." But in the news conference, Ross says, "shame on me" and "I have to do better." 

Image source.

Discussion: 

  • What's your view of the research about customer service at hotels? What does the research potentially say about the situation at Starbucks?
  • Have you experienced bias in a customer service setting? What was the situation, and how did you handle it? 
  • How well does Ross handle the apology in the news conference? How does his identity factor into his response? How does he demonstrate authenticity, vulnerability, and other leadership character dimensions?

Mariah Carey Talks About Having Bipolar Disorder

In 2001, singer Mariah Carey learned she had bipolar disorder, and now she is admitting it to the world. In an People magazine cover story, Carey talks about her initial denial and her decision to open up about her diagnosis:

“Until recently I lived in denial and isolation and in constant fear someone would expose me. It was too heavy a burden to carry and I simply couldn’t do that anymore. I sought and received treatment, I put positive people around me and I got back to doing what I love — writing songs and making music.”

“I’m just in a really good place right now, where I’m comfortable discussing my struggles with bipolar II disorder. I’m hopeful we can get to a place where the stigma is lifted from people going through anything alone. It can be incredibly isolating. It does not have to define you and I refuse to allow it to define me or control me.”

Bipolar disorder, also called manic-depressive disorder, affects about 5.7 million adults in the U.S., which is about 2.6% of the population.

Reactions to the news seem mostly positive, with comments such as this on Twitter:

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This story reminds me of a TedX talk, "Everyone Is Hiding Something" about a woman's struggle with an eating disorder.

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Discussion:

  • What are the potential personal and professional consequences to Mariah Carey of going public with her diagnosis?
  • What do you hide about yourself that might be useful for others to know?
  • What is the value of admitting personal struggles in the workplace?
  • How does Mariah Carey's story demonstrate leadership character dimensions, such as courage, compassion, authenticity, and vulnerability?